Benefits and Risks of Social Capital - A Resource-Based Approach

Abstract:

This paper reviews concepts of social capital, resource-based view and resource dependence theory with the view of focusing on their most basic meaning as a basis for determining the benefits and risks of social capital. The benefits of social capital from the resource-based view were explored with focus on how firms achieve competitive advantage. The risks of social capital from the resource dependence perspective were likewise reviewed in the context of individual and corporate behavior. The review concluded with a recommendation for study on how to maximize benefits and reduce therisk of social capital in multidimensional situation.